John works for a disclosed principal in securing real estate for business expansion. While working on...

John works for a disclosed principal in securing real estate for business expansion. While working on a purchasing assignment for his employer, John attempts to back out of a deal he signed with a seller. Which of the following is true?

The seller may look to either John or his employer to satisfy the contract, depending on the outcome of the sales deal.
The seller may look to either John or his employer to satisfy the contract, depending on whether John’s actions were within the scope of his authority or not.
The seller must look to John’s employer to satisfy the contract he signed.
The seller must look to John to satisfy the contract he signed.

Solutions

Expert Solution

Ans (Option c) The seller must look to John’s employer to satisfy the contract he signed.

A disclosed agent acts in the name of the principal, the customer is aware that they are dealing with an agent of the principal. The supply or purchase of the goods or services takes place directly between the Principal and the customer.

A disclosed principal is liable to a third party for a contract made by an agent who is acting within the scope of his or her authority.

keosha answered 2 years ago

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